Bought 250 VEN.TO @ $6.93

I’m long Ventana Gold Corp. (VEN.TO), a junior gold mining company. Here’s a look at gold (Figure 1) and the junior gold mining company index (GDXJ, Figure 2).

Gold

Market Vectors Junior Gold Miners ETF (GDXJ)

Both figures are from Finviz.

The reason why I picked VEN in particular is related to this article in June. Ventana Gold raises $20 million in private placement. Silver Wheaton (SLW) paid $20 million for shares priced at $11.11 per share back in June. SLW is a well managed company in the precious metal industry. I’ve traded it before and it has always been on my radar to buy.

VEN has been taking a heavy beating in the past few weeks since SLW’s investment as shown in Figure 3.

Ventana Gold Corp. (VEN.TO)

$6.80 is the 50% retracement level to that recent rally (the first since the dive beginning in June). It seems to be holding well today despite market weakness.

Furthermore, EUR/USD rocketed upward and is trading around 1.29. This isn’t something to be ignored.

So I’m taking a small bet here at $6.93. Stop loss order is opened at $6.40. My risk is thus, ($6.93 – $6.40) * 250 = $132.50 + $9.90 commission = $142.40 = 1.5% of account.

Related posts:

1. Bought 200 VEN.TO @ $9.74, Stop $8.90
2. Bought 150 VEN.TO @ 10.85
3. Sold 350 VEN.TO @ 10.50 (Profit +0.8%), Re-Bought 250 VEN.TO @ 10.67
4. Bought 300 VEN.TO @ 8.95, Stop 8.80
5. Sold 250 VEN.TO @ $7.89, Profit +2.4%